Taiwan shares soar as TSMC leads rebound

Taipei, Feb. 17 (CNA) Shares in Taiwan surged Monday, led by a Taiwan Semiconductor Manufacturing Co. (TSMC) technical rebound, which helped the broader market recover from the previous session's weakness, dealers said.

After falling 1.05 percent on Friday, the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE), ended up 352.72 points, or 1.52 percent, at 23,505.33 after moving between 23,242.84 and 23,510.68. Turnover totaled NT$363.42 billion (US$11.11 billion).

The market opened up 0.46 percent and buying accelerated throughout the session leading to the index surpassing the 23,500-point mark by the end of the session. TSMC rose 2.30 percent to close at the day's high of NT$1,085.00.

The gains posted by TSMC, the most heavily weighted stock, contributed about 200 points to the Taiex rise and sent the electronics index and the semiconductor sub-index by 1.86 percent and 2.25 percent, respectively.

"The market was still assessing whether TSMC will take a stake in Intel Corp.'s wafer fabs and how it might meet Trump's 'Made in America' request," said Concord Securities analyst Kerry Huang. "That's why I see TSMC's gains today as more of a technical rebound."

"Many investors remain worried that if TSMC takes a stake in Intel through technology transfers, it won't actually benefit from the deal and will instead face risks of technology leaks," Huang added.

Meanwhile, smartphone IC designer MediaTek Inc. ended up 2.66 percent at NT$1,545.00 and IC packaging and testing services provider ASE Technology Holding Co. increased 1.71 percent to close at NT$178.00. United Microelectronics Corp., a smaller contract chipmaker, ended up 1.45 percent at NT$42.00.

Second to TSMC in terms of market value, iPhone assembler Hon Hai Precision Industry Co. gained 2.53 percent to close at NT$182.50, while Largan Precision Co., a smartphone camera lenses supplier to Apple Inc., added 2.43 percent to end at NT$273.50.

"In addition to tech stocks, select old economy industries also attracted bargain hunters, including stocks related to shipping, Huang said.

In the transportation industry, which rose 1.90 percent, Evergreen Marine Corp., the largest container cargo shipper in Taiwan, rose 2.13 percent to close at NT$216.00, and rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd. gained 1.28 percent and 2.55 percent, respectively, to end at NT$71.20 and NT$84.40.

Artificial intelligence-related robot development continued to boost the so-called "robotics concept stocks", Huang said. Among them, Hiwin Technologies Corp. jumped 7.70 percent to close at NT$363.50, and Hota Industrial Manufacturing Co. surged 10 percent, the maximum daily increase, to end at NT$78.70.

In the financial sector, which rose 0.76 percent, Fubon Financial Holding Co. rose 0.97 percent to close at NT$94.00, and Cathay Financial Holding Co. ended up 0.44 percent at NT$69.00.

"Despite today's gains, the Taiex has entered consolidation mode, facing strong technical resistance after surpassing 23,500 points," Huang said.

According to the TWSE, foreign institutional investors bought a net NT$24.73 billion worth of shares on the main board Monday.